After a three-day losing streak, natural gas rebounded on the New York Mercantile Exchange or NYME. According to observers as a winter storm spread across the U.S. Northeast, people are looking for more natural gas and that is leading to a boost in demand for the heating fuel like natural gas which ultimately helps the natural gas producers.
Amidst the increased demand for natural gas, futures for March delivery rose as much as 3.5 percent to $5.078 per million British thermal units in electronic trading on the NYME. Yesterday the contract fell 0.8 percent to $4.905 which according to observers is the lowest settlement in a week.
Nevertheless, there have been better predictions for natural gas this year so far as prices have gained 19 percent in 2014. Moreover, as light snow began falling in New York yesterday, the demand for natural gas will go higher this week. It is to be noted that when an estimated 49 percent of U.S. households use gas for heating, the prediction is quite accurate.
At the same time, according to Goldman Sachs Group Inc. the U.S. gas inventories may drop to 1,198 billion cubic feet from a previously estimated 1,388 billion by the end of March which will also help the prices go up.
WTI Slightly Up Today
3:41A CST (NYMEX) WTI crude was trading at 96.88+0.45 (+0.47%) as market players awaited key U.S. weekly supply data so that they can gauge the strength of oil demand from the world’s largest consumer. A slightly better prospect was seen earlier when on the New York Mercantile Exchange, WTI crude for delivery in March traded in a range between USD96.45 a barrel and USD96.94 a barrel.
A government report could show crude stockpiles rose by 2.6 million barrels in the week ending January 31. The American Petroleum Institute collects data from operators of refineries, bulk terminals and pipelines.